The market’s expectation for a 25-point hike came amid commentary by key Federal Reserve governors that the FOMC wasn’t quite done with its fight against inflation. If the inflation rate remains significantly above the Fed’s 2% long-term target, further hikes are definitely on the table.įind out what happened at this Fed meeting, what it means for the broader economy, and how you can prepare your finances for what’s to come. But Chair Powell made clear, as he has in the past, that future increases would depend on what happens with inflation in the coming months. It’s not clear whether rates will increase again after that meeting, but economists widely expect at least one more rate hike before the end of 2023.Ĭooling inflation data and encouraging signs of economic resilience were enough to convince the Fed to raise rates in July. The Fed meets again on September 19 and 20, 2023. It pushed the target federal funds rate to range between 5.25% to 5.50%, a 525-basis-point increase from March 2022. The FOMC’s July 2023 rate hike is the latest in a long series of hikes beginning in early 2022. Federal Reserve Chair Jerome Powell announced the move at 2pm Eastern Time on Wednesday, July 26. The Federal Open Market Committee of the Federal Reserve hiked the closely watched federal funds rate by 25 basis points, or one-quarter of a percent, at its meeting in July 2023. The Fed is expected to hike rates at least one more time in 2023, but the timing is not clear.Savings account yields could increase as well.Due to the rate hike, interest rates on credit cards and mortgages may climb into August.T he Fed raised its benchmark interest rate by 25 basis points at its July 2023 meeting.Gaetz says ‘absolutely’ worth it for him to lose seat in Congress for. McCarthy calls on Biden to refreeze $6B in Iranian funds Justice Department fights Trump effort to push Mar-a-Lago trial until after. Palestinian president asks UN for help with ‘Israeli aggression’ in Gaza Trump questions how Jews or ‘anybody who loves Israel’ can vote for. Hezbollah fires again at Israel, spurring fears of second front Tlaib, Bush criticized by Democrats over statements calling for end to Israel. House GOP debates ditching ‘motion to vacate’ rule that unseated McCarthy Iran sends deadly message to Biden with Hamas attack on IsraelĮlon Musk flags Iranian supreme leader’s post on Hamas attack on IsraelĬhinese leader Xi strengthens statement on Israel after pressure from Schumer That is not an accomplishment - it’s a reminder of how precarious our fiscal situation remains,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement. However, budget hawks and conservatives have seized on the news, sounding a different note by taking aim at Democratic pandemic-related relief like the American Rescue Plan and the Biden administration’s recent student loan forgiveness plan that they’ve panned as costly amid rising inflation. “Under his leadership, more Americans are working today than at any point in our country’s history, our economy has added more than 10 million jobs, manufacturing is booming, and we cut last year’s deficit in half.” “The President’s economic plan is focused on growing our economy from the bottom up and the middle out,” Shalanda Young, director of the Office of Management and Budget, said in a statement. The new reporting also found that, as a percentage of gross domestic product, the fiscal 2022 deficit “was 6.8 percentage points lower than in the previous year.” The Biden administration said the figure was $40 billion less than forecasted in Biden’s 2023 budget and half of the fiscal 2021 deficit, which reached $2.8 trillion, the second largest in history. Treasury Secretary Janet Yellen also marked the numbers as “further evidence of our historic economic recovery” on Friday, shortly after her office released data showing the deficit reached $1.375 trillion in fiscal 2022, which ended last month. This record deficit reduction includes the cost of my student loan plan and everything else we’re paying for.” The largest ever decline to the federal deficit,” he said.
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